The System Approach

The system approach to problem solving uses a systems orientation to define problems and opportunities and develop solutions. Studying a problem and formulating a solution involve the following interrelated activities 3. Recognize and define a problem or opportunity using systems thinking. 4. Develop and evaluate alternative system solutions. 5. Select the system solution that best meets your requirements. 6. Designing the Selected system solution. 7. Implement and evaluate success of the designed system.

Information Technology can help Reengineer Business Process

Old Rule : Field personnel need offices where they can receive, store, retrieve, and transmit information. Information technology : Internet/ Intranet Web sites and portable computers. New Rule : Field personnel can send and receive information wherever they are.

Define The Problem

Recognize and define a problem or opportunity using systems thinking.

Develop Alternative Solutions
Monitor and Evaluate Results

Develop and evaluate alternative system solutions.

Select The Solution

Select the system solution that best meets your requirements.

• Design The Solution

Designing the Selected system solution.

Implement the Solution

Implement and evaluate success of the designed system.

Major Categories of MIS
Operations support systems process data generated by business operations. Major categories are : • Transaction processing systems process data resulting from business transactions, update operational databases, and produce business documents. • Process control systems monitor and control industrial processes. • Enterprise collaboration systems support team, workgroup, and enterprise communications and collaboration. End Users – anyone else who uses information system.

Major Categories of MIS

Management support systems provide information and support needed for effective decision making by managers. Major categories are: • Management information systems provide information in the

form of pre defined reports to managers. • Decision support systems provide interactive ad hoc support for decision-making process of managers. • Excusive information systems provide critical information tailored to the information needs of executives.

Other categories of information systems can support either operations, management, or strategic applications.

Major categories are : • Expert systems are knowledge-based systems that provide expert

advice and act as an expert consultants or users. • Knowledge management systems are knowledge-based systems that support the creation, organization, and dissemination of business knowledge within the enterprise. • Strategic information systems provide a firm with strategic products, services, and capabilities for competitive advantage. • Business information systems support the operational and managerial applications of the basic business functions of firms.

Information Systems

Top Support of Strategic Advantage Middle Support of Managerial Decision Making

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Support of Business Operations

The Three major roles of information systems provide an organization with support for business operations, managerial decision making, and strategic advantage.

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Components of MIS
People Resources systems analysts, programmers, computer operators. End Users – anyone Specialists –else who uses information system.
Hardware Resources Machines- computers, video monitors, magnetic disk drives, printers, optical scanners. Media – Floppy disks, magnetic tape, optical disks, plastic cards, paper forms. Software Resources Programs-Operating system programs, spreadsheet programs, word processing programs payroll Programs Procedures-data entry procedures, error correction procedures, paycheck distribution procedures.

Data Resources Product descriptions, customer records, employee files, inventory database. Network Resources Communications media, communications processors, network access and control software. Information Products Management reports and business documents using text and graphics displays, audio responses, and paper forms.

Conceptual Overview Of Information Systems
Information System

Support of business Operations

Operations Supports Systems

Management Support Systems

Supports of Managerial Decision Making

Transaction Processing System Processing Business Transactions

Process Control Systems Control of Industrial Processes

Enterprise Collaboration Systems Team and Workgroup Collaboration

Management Information Systems Pre specified Reporting For Managers

Decision Support Systems Interactive Decision Support

Executive Information Systems Information Tailored for Executives

Transaction Processing System & Transaction Documents

Purchasing

Accounting

Sales Transaction Processing

Materials Planning

Work in Progress

Inventory Control

 Purchase Orders Receiving Notice  Supplier Invoices Payment to suppliers  Etc.

 Work Orders  Inventory Tags  Employee Time Cards  Employee Paychecks  Etc.

 Sales Orders  Shipping Notices  Customer Invoices  Customer Payments  Etc.

Variety Of Information Technologies to Support the Collaboration of Teams & Work Groups

Same Place

Face – to- Face Meeting
 Electronic copy boards  Electronic decision room tools  Team – building tools

Teams in Place
 Team room tools  Shift work group

Platforms

 The Internet  Intranets  Extranets  Other Networks

Ongoing Coordination

Different Place Cross- Distance Meeting
• Audio conferencing •Desktop videoconferencing • Screen Sharing •Teleconferencing

• Voice mail • Electronic mail •Group-editing • Project managers/schedulers • work flow systems

The Internet
Extranets Suppliers and Other Business Partners

Company Boundary

Procurement,distribution, and logistics

Engineering and research

Manufacturing and Production

Accounting, finance, and management

Advertising

Sales

Customer

Extranets

Consumer and Business Customers

Corporate Intranet Supports Enterprise Collaboration
Marketing  Product Positioning Competitive Analysis Current Projects Finance  Quarterly Report Annual Report Stockholders Meeting

Human Resources  Travel Policies Benefits Profiles Training Programs

Corporate Home Page  Message of the Day Company Newsletter Financial Update Intranet Links Internet Links

Sales Competitive Analysis Current Sales Customer info

Training  Courses Available Class Registration Training Profiles

Manufacturing  Total Quality Management Product Schedule Engineering

Customer Info  Recent Wins Customer Visits Customer Feedback

Information Technology can help Reengineer Business Process

Old Rule : Managers Make all decisions Information technology : Decision Support Tools (Database access, Modeling software) New Rule : Decision Making is part of everyone’s job.

Information Technology can help Reengineer Business Process

Old Rule : Only experts can perform complex work. Information technology : Expert systems New Rule : A generalist can do the work of an expert.

Information Technology can help Reengineer Business Process

•Old Rule : Information can appear in only one place at one time. Information technology : Shared databases via the Internet, intranet, and extranets. •New Rule : Information can appear simultaneously in as many places as needed.

IT Reengineered Business Process at Different Levels
IT Initiative
Salesperson Laptop Sales Call System

Process Changed
Sales Call

Business Benefit
Increased Sales

Marketing Team

Web Site Product Database Product Management System

Product Distribution Marketing Channel Communication

Greater Customer Satisfaction Improved Competitive Position

Business Unit

Use of IT to Support Competitive Strategies
Customers Supplers

Salesperson

Attract new customers & lock in present customers by creating switching cost Offer Lower Prices

Lock in Suppliers by creating switching costs Help Supplier lower costs

Cost Leadership Strategy

Differentiation Provide better quality, features, and service Innovation Strategy Provide new products and services to

Help Supplier improve service Develop Unique supply services or

Use of IT to Support Competitive Strategies
Competitors Salesperson Lockout Competitors by locking in cust0omers and supplier New Entrants Create Barriers to entry into the industry

Cost Leadership Strategy Differentiation

Undercut Competitors price

Make Entry Investment unattractive

Toughen competition with unique features Provide unmatched product and services

Complicate entry

Innovation Strategy

Enter business of potential entrants

Use of IT to Support Competitive Strategies
Substitute Salesperson Cost Leadership Strategy Make Substitution unattractive Make substitution Economically unfeasible

Differentiation

Provide features of substitutes Produce substitutes

Innovation Strategy

Use of IT to Support Competitive Strategies
Customers
Salesperson Attract new Customers and Lock in present Customers by creating Switching cost Offer Lower Prices

Suppliers Competitors New Entrants
Lock in Suppliers by creating switching costs Help Suppliers Lower costs Help Suppliers improve service Lockout Competitors by locking in cust0omers and supplier Undercut Competitors price Create Barriers to entry into the industry

Substitute
Make Substitution unattractive

Cost Leadership Strategy

Make Entry Investment unattractive Complicate entry decision

Make substitution Economically unfeasible Provide features of substitutes

Differentiation Provide better quality, features, and service

Toughen competition with unique features

Innovation Strategy

Provide new products and services to

Develop Provide unmatched Enter business Unique supply product and of potential services or services entrants

Produce substitutes